Quick Guide on How to File Value Added Tax on Financial Service (VATFS) Return
Department of Inland Revenue has published a quick guide on “How to File Value Added Tax on Financial Service (VATFS) Return”. Click here to Download the Guide
Read More
How to calculate Statement of Estimated Income Tax Payable
Department of Inland Revenue has published estimate Income Tax Return and Guidelines for the Y/A 2019/2020. Statement of Estimated Income Tax Payable Instructions for the Submission of Statement of Estimated Income Tax Payable Download – Instructions for calculation of Statement of Estimated Income Tax Payable [NEW]
Budget 2021
Budget speech 2021 and budget analyses. Budget Speech 2021 Budget Speech (Including Technical Notes): English | Sinhala | Tamil Budget 2021 analyses Ernst & Young: Sri Lanka 2021 budget proposals – at a glance KPMG: Budget Analysis 2021 Deloitte: Budget Highlights 2021 Kreston: Budget Proposals 2021 CA Sri Lanka Budget Highlights 2021
IRD Notice on Inactivation of VAT Registration
As approved by the Cabinet of Ministers and instructed by the Ministry of Finance, Value of taxable supplies for the purpose of registration for VAT (VAT registration threshold) will be increased with effect from January 01, 2020, up to 75 million rupees per quarter or 300 million rupees per annum subject to formal amendments to…
What is Employment Income | How to calculate Assessable Income from Employment for the Y/A 2023/2024 & Y/A 2024/2025
Employment income is an essential component of taxation, representing the total gains and profits derived from an individual’s employment. This includes all remuneration received in cash or kind from an employer as compensation for services rendered. For the year of assessment (Y/A) 2023/2024 in Sri Lanka, employment income plays a pivotal role in calculating the…
Amendment of Tax Legislation – Policy Measures for Economic Revival
Followed by a proposal made by H.E the President, the approval of the Cabinet was granted at its meeting held on the 2019‑11‑27 for the introduction of a simple, transparent and efficient tax system to all the stakeholders in the economy including consumers, working population, entrepreneurs and tax paying community. Morefully, the Government has also…
Value Added Tax (Amendment) Bill – 2022
This amendment is to increase the VAT rate from 15% to 18% per centum on supply of financial services on financial institutions with effect from January 1, 2022 and to exempt certain goods and services from VAT in order to give effect to budget proposals of 2022. Download Bill – English | Sinhala
Budget 2019 – Proposals on Income Tax
Income Tax (Amendments to the Inland Revenue Act, No.24 of 2017) Exemptions The Earnings by any non-resident person on any sovereign bond denominated in local or foreign currency will be exempted. Interest income earned by any resident person on sovereign bonds denominated in foreign currency, including Sri Lanka Development Bonds (SLDB) will be exempted. Interest…
Updated Schedule Verification Tool
Download and run the Schedule File Verifier Tool to verify your schedules (VAT/SVAT/PAYE/WHT/CIT/IIT/PIT) before submitting to IRD via E-filing. Download Link (Version – 5.3) – 14 January 2020 Guide for “How to use the schedule verification tool”
VAT Rate
History of General VAT Rate change in Sri Lanka from 2002 to date. Period Type Rate Rates applicable from 01.08.2002 to 31.12.2003 01.08.2002 – 31.12.2003 Reduce – 2nd Sch. 10% Standard – All other 20% Rates applicable from 01.01.2004 to 31.12.2008 01.01.2004 – 18.11.2004 Single Rate – 3rd Sch. 15% 19.11.2004 – 31.12.2004 Basic Rate – 3rd Sch….
Suspension of the Notices of Recovery of Tax out of Debts
Department of Inland Revenue has published a paper notice (PN/DTR/2020-02) by in lining with the approval for “Tax Relief Measures to Facilitate Post COVID-19 Economic Recovery” granted by the Cabinet of Ministers on June 24, 2020, all the Banks are informed that the notices issued, if any, under Section 180 of the Inland Revenue Act…
IRD Notice on VAT Registration and 22(7) Extension
Taking into account the prevailing situation in the country due to the outbreak of Covid-19 virus, the Inland Revenue Department has taken the following steps to extend the project duration for SVAT purposes and to issue VAT registration (temporary and permanent). Extension of the project period in terms of section 22(7) of the Value Added…
Updated Inactive VAT List as at 20-02-2019
Department of Inland Revenue has published updated VAT Inactive List as at 20-02-2019. Download Inactive VAT List as at 20-02-2019
Calculation of Income Tax payable for the year of Assessment commencing on April 1, 2022 – Circular No. SEC/2023/E/03
Circular No. SEC/2023/E/03, issued on May 9, 2023, provides guidance on the calculation of Income Tax payable for the year of Assessment starting from April 1, 2022. The circular, published by the Inland Revenue Department of Sri Lanka, aims to assist taxpayers in understanding the process and requirements for determining their income tax liability. It…